Marginal note:Provisions re registered pension plans
59 (1) For the purposes of the provisions of the Income Tax Act and the Income Tax Regulations that relate to registered pension plans,
(a) the CPBSL is deemed to have been the employer of an eligible pilot and an eligible pilot is deemed to have been an employee of the CPBSL throughout any period, either before or after the coming into force of this Part, during which the eligible pilot was a member of the CPBSL and held a pilot’s licence from the Authority, whether suspended or not, or served as an apprentice pilot to obtain a pilot’s licence for District No. 2 designated by the Authority;
(b) an eligible pilot is deemed to have been employed and to have rendered services on a full-time basis throughout any year if the number of pilotage tours credited to the pilot for the year is not less than 90 % of the average number of tours for pilots in the year, determined by the Société on the basis of the total number of paid tours for pilots in the year, and is otherwise deemed to have been employed and to have been rendering services on a part-time basis throughout the year, with the proportion of full-time service being determined as the proportion of the number of tours so credited to the average number of tours for pilots;
(c) any period authorized by the CPBSL during which an eligible pilot was not available to perform services as a pilot, otherwise than by reason of illness or disability for more than 12 months, is deemed to be a period throughout which the pilot did not render services to the CPBSL by reason of leave of absence;
(d) the period of employment of an eligible pilot by the CPBSL includes any period before 1994 during which the pilot
(i) was enrolled at the Institut de Marine de Rimouski or any other educational institution accredited by the Authority, or
(ii) served as an officer of a ship,
to the extent that the period was credited under the pension plan before 1994;
(e) the fees paid to an eligible pilot by the Société, either before or after the coming into force of this Part, are deemed to have been paid by the CPBSL and to be remuneration of the eligible pilot and, for the purposes of section 147.1 of the Income Tax Act, to be part of the pilot’s compensation;
(f) any amount paid to the fund by the CPBSL is deemed to be a contribution made by the CPBSL and not by an eligible pilot;
(g) the pension plan is deemed to be a grandfathered plan;
(h) for the purposes of paragraph 8503(3)(e) and subsection 8509(3) of the Income Tax Regulations, all benefits provided under the pension plan in respect of periods before 1992 are deemed to be acceptable to the Minister of National Revenue to the extent that
(i) the periods were credited under the pension plan before 1994, and
(ii) the benefits could have been provided under the terms of the pension plan as they read at the end of 1993;
(i) subsection 8504(6) of the Income Tax Regulations does not apply in respect of benefits credited under the pension plan before 1994;
(j) the past service pension adjustment (PSPA) of an eligible pilot with respect to the CPBSL for the year in which this Part comes into force shall be determined as if the eligible pilot’s provisional PSPA with respect to the CPBSL that is associated with the registration of the pension plan under section 147.1 of the Income Tax Act were nil, to the extent that the provisional PSPA relates to benefits provided under the pension plan in respect of years after 1993;
(k) for each particular year that is after 1993 and before 1998,
(i) the pension adjustment of an eligible pilot with respect to the CPBSL shall be determined as if the pension plan had been a registered pension plan in that particular year and as if all benefits provided to the pilot for that particular year had accrued on a current-service basis, and
(ii) information returns reporting the pension adjustment so determined must have been filed, not later than September 9, 1998, with the Minister of National Revenue in the form and manner authorized by that Minister;
(l) if the pension plan is registered under section 147.1 of the Income Tax Act within 120 days, or any longer period that is acceptable to the Minister of National Revenue, after June 11, 1998, the assets of the fund are deemed to have been transferred to the fund from a registered pension plan;
(m) the CPHQ shall assume the obligations of the employer under Part LXXXIV of the Income Tax Regulations with respect to eligible pilots; and
(n) the requirement of certification under paragraph 147.1(10)(a) of the Income Tax Act does not apply in relation to benefits provided under the pension plan before 1994 in respect of the years 1990, 1991, 1992 and 1993.
Marginal note:Additional benefits
(2) For greater certainty, paragraph (1)(h) does not apply so as to prevent additional benefits from being provided, by way of an amendment to the pension plan after 1993, in respect of the periods referred to in subparagraph (1)(h)(i).
Marginal note:Part X.1 tax
(3) For the purposes of Part X.1 of the Income Tax Act, the cumulative excess amount of an eligible pilot in respect of registered retirement savings plans at any time before July, 1998 shall be determined as if each of the following amounts were nil:
(a) any pension adjustment of the pilot referred to in paragraph (1)(k); and
(b) the pilot’s provisional PSPA, within the meaning of the Income Tax Regulations, with respect to the CPBSL that is associated with the registration of the pension plan under section 147.1 of the Income Tax Act.
- 2001, c. 26, s. 317
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